Spencer Noon Profile picture
Head of @DTCCapital โœ˜ Editor @OurNetwork__
Rich Profile picture Sam Birkhead Profile picture 2 added to My Authors
16 Aug
7 indicators every #DeFi investor should be using to evaluate projects ๐Ÿ‘‡๐Ÿผ
1. Total Value Locked / Fully-Diluted Marketcap

Here's why: Protocols with more value locked should be able to capture more value.

Rule of thumb: โฌ†๏ธ number = ๐Ÿ‘๐Ÿผ better

DIY: @defipulse @coingecko
2. Price to Sales (aka Marketcap / Revenue)

Here's why: #DeFi protocols that sustainably capture revenue have better long-term prospects.

Rule of thumb: โฌ‡๏ธ = ๐Ÿ‘๐Ÿผ

DIY: @tokenterminal
Read 13 tweets
7 Aug
8 signs this #DeFi bull market is nowhere close to slowing down ๐Ÿ‘‡๐Ÿผ
1. Assets supplied to @compoundfinance have risen nearly 14x since the launch of the $COMP governance token, with supplied assets increasing from $124m on June 14th to $1.84B today.

h/t @nickmartitsch
2. There is $1.1B of $DAI supply on @compoundfinance, up from $48m on July 1st.

h/t @nickmartitsch
Read 10 tweets
23 Jul
Trying to make sense of this explosive #DeFi growth? ๐Ÿ“ˆ

My top 10 dashboards for tracking the health of #DeFi ๐Ÿ‘‡๐Ÿผ
1. Track the explosive growth of #DeFi users over time with this dashboard by @richardchen39: explore.duneanalytics.com/dashboard/defiโ€ฆ
2. Understand basic #Ethereum metrics using this dashboard by @alex_kroeger: explore.duneanalytics.com/public/dashboaโ€ฆ
Read 9 tweets
4 Jun
Reminder: @MakerDAO has $538 million locked in #DeFi
That is more than 4x the next closest project (@synthetix_io)
There are 132M $DAI outstanding, which dwarfs every other decentralized stablecoin
Read 10 tweets
27 May
The power of Ethereum is on full display with today's launch of @withFND, a new medium for buying, selling, and trading limited-edition goods. THREAD:
I'm thrilled to be supporting @withFND, which empowers creators to monetize their goods (๐Ÿ‘•๐Ÿ‘Ÿ๐Ÿ–ผ๏ธ๐ŸŽถ + more) in unprecedented fashion. How? Creators mint and sell a limited supply of tokens that each represent a good. They also earn $ from secondary market sales.
Purchasers can either redeem their token for the good or sell their token on the secondary market. This gives them a real stake in a creator's success. @withFND built its own custom exchange, bonding curves, and smart contracts to support this specific use case. It is elegant.
Read 6 tweets
26 May
10 signs we're headed for a new $ETH bull market ๐Ÿ‘‡๐Ÿผ
#1: Ethereum has 380k daily active addresses (90-day MA) -- a figure not seen in over 2 years.
#2: More than 60 billion gas is now being used on a daily basis -- a sign that Ethereum blockspace demand has never been higher.
Read 12 tweets
18 Mar
1/Tmrw morning EST is the first-ever @MakerDAO debt auction. The system will mint and sell $MKR for lots of 50k $DAI until it eliminates a ~5.3m deficit. As a result, Dai liquidity is of paramount importance.

We can look to the blockchain for insights. THREAD:
2/As of 11am there is 90.9m $DAI total in circulation. Here is where it is located:

- 25.7m in DSR (28% of supply)
- 19.7m on Compound (22%)
- 7.8m on exchanges (8.5%)
- 5.9m on dYdX (6.5%)
- 32m Dai everywhere else

Source: Dai Stats, Nansen, Dai in DeFi, Compound, dYdX
3/There is only 7.8m $DAI on exchanges. The top 5 exchanges presently hold ~3.5m Dai and have had outflows of ~2m Dai over the last 7 days.

Source: Nansen
Read 8 tweets
13 Jan
THREAD: Many people wrote off the #DEX space in 2019 โ€” now they're eating their words. Let's take a look at its impressive growth and some of the factors driving this resurgence ๐Ÿ‘‡๐Ÿผ(1/6).
Top-level growth:

Trading activity on @KyberNetwork has exploded over the past year and continues to grow.

Trade Volume
โ€ข 2018: $70m
โ€ข 2019: $380m (+443%)

Total Trades
โ€ข 2018: 119k
โ€ข 2019: 445k (+274%)

h/t @DenizOmer (2/6)
Category expansion:

NFT trading โ€” led by @TokenTrove's @GodsUnchained marketplace โ€” is taking off on @0xProject. The exchange currently dwarfs other relayers who specialize in strictly financial use cases.

h/t @alex_kroeger (3/6)
Read 6 tweets
17 Sep 19
1/10. $ETH price is surging today, crossing $200 for the first time since 8/20. Let's have a look at the fundamental indicators and on-chain metrics driving this move.

2/10. Starting with the most bullish indicator. As @coinmetrics notes in their newsletter today, ETH is overtaking BTC in daily transaction fees. This suggests there is a strong demand for using Ethereum.
3/10. Daily total gas usage is at ATHs. This means users are doing increasingly complex operations on the network.

Read 12 tweets
9 Sep 19
[THREAD] This past weekend I was lucky enough to have been a judge at @ETHBoston. As an investor in the space, here are some of my top takeaways, trends to watch, and favorite projects from the hackathon.
2/First, some context. Like other @ETHGlobal events, ETHBoston was well-attended, with over 400 hackers in attendance. Participants had a wide range of #Ethereum experience and traveled from all over the world to attend the event (stats below).
3/At the end of the weekend, 55 projects were submitted to judges. Of those, 6 projects were selected as finalists and they presented to the entire hackathon audience.

You can view all of the hackathon projects here on @devpost: ethboston.devpost.com/submissions

Read 13 tweets
2 Jul 19
Young person looking for a job at a #crypto fund?

Here's my 5-step plan for getting an investing gig ๐Ÿ‘‡๐Ÿฝ
1. Build a personal brand on Twitter.

Change your avatar to something notable (like an emoji clock ๐Ÿ˜‰) and start open-sourcing your thoughts. Slowly get more followers by engaging in conversations with other well-followed people. Above all else, act like you belong.
2. Create a personal website.

Make it easy for hiring managers to understand your background. Build a one-stop-shop that has your education, work history, and notable work (e.g. blog posts). Post this in your Twitter bio.
Read 7 tweets
21 May 19
1/10. I was a judge at the @ETHNewYork hackathon. I judged 25 projects in total, all of them created in a 3-day period by developers with varying backgrounds.

As an investor, I look at the big picture. Here are my top ETH-related takeaways and themes from this weekend.

2/10. Top takeaway: the first wave of ETH infrastructure is finally complete.

Most projects leveraged multiple pieces of infrastructure (ex's ๐Ÿ‘‡๐Ÿผ) and the resulting outputs were sophisticated.

You can now hack something in a weekend that would have taken months not too long ago.
3/10. With infrastructure ready, developers can now spend time innovating on UX instead of creating products from scratch.

UX is about to explodeโ€”I got this epiphany seeing Feline, which lets you use Compound by sticking CryptoKitties on a fun graph.

Read 10 tweets
7 May 19
1/17. The price of ETH is +8% in the past 7 days. Are we in for a bigger move?

Let's have a look at the fundamentals. Thread:
2/17. Starting with on-chain data. After almost a year of straight decline, the number of new addresses being created on Ethereum each day has been growing for 3 straight months.
3/17. Ethereum continues to be the only public blockchain besides Bitcoin that has a meaningful market for security paid in fees. Per @onchainfx, ETH fees have totaled $53,666 in the past 24 hours, more than 48x the next closest coin (Litecoin, $1101 in fees).
Read 17 tweets
18 Apr 19
1/The point is that aside from tokenization, BinanceChain currently offers literally zero of the functionality that Ethereum does. No respectable project would ever move to another chain on the basis of liquidity concerns for retail traders.
2/A project who decides to exit ERC20 destroys its composability with other layers of infrastructure (e.g. 0x, Augur, Maker, Uniswap). This will change over the next few years as Cosmos progresses, but we're not close yet.
3/BinanceChain is also controlled by a single company, so the reality is that any project that converts today is basically signaling that their token (1) doesn't need censorship resistance and (2) has no utility value other than trading.
Read 6 tweets
30 Mar 19
[1] Back to college! If learning about Bitcoin and other crypto networks is a 100-level course, and using them is 200-level, then here is a thread on some of the most timely 300-level topics to dive into. {thread๐Ÿ‘‡๐Ÿฝ}
[2] Learn how @MakerDAO governance really works and how stakeholders are working to keep the Dai stablecoin pegged to 1 USD.

h/t @teo_leibowitz @TheBlock__

[3] Get into the weeds of the Ethereum community and understand the ongoing #ProgPoW debate.

Read 15 tweets
27 Mar 19
1/The launch of synthetic assets on decentralized networks like Ethereum is a major development for #OpenFinance! Let's take a closer look at synthetic cryptoassets and explain what they are, why they matter, as well as some of the risks associated with them.
2/Synthetic assets give investors exposure to an asset/portfolio of assets without actually needing to hold them. This is done using a financial contract with a counterparty. Contracts can be structured in different ways to mimic the effects of interacting with assets directly.
3/A common synthetic asset is a Total Return Swap. Here a counterparty agrees to pay the total return of an asset (such as FB stock) while the other agrees to pay a regular fixed cash flow and post margin/collateral. A swap terminates and settles at a later date in the future.
Read 18 tweets
14 Mar 19
0/Great question. There is some nuance to why the Ethereum community appears to prefer Cosmos over Polkadot. Let me explain why I think that is.

*Note: all of these are not my personal opinions
1a/A core tenet of Cosmos is that blockchains should be sovereign, meaning they are 100% in control of their own governance. In this world, ETH can fit into the internet of blockchains (๐Ÿ‘‡๐Ÿฝ) and its governance will continue to operate as it currently does.

1b/Polkadot does not share this belief. Its network's on-chain governance system can actually affect parachains (e.g. vote them off the system). So if Ethereum was a parachain, it would no longer be sovereign.

I've explored this dynamic in the past:

Read 7 tweets
4 Mar 19
0/ People often ask me why I'm not more excited about the Lightning Networkโšก

A good place to start is @StarkWareLtd's most recent blog post, which lays out many of LN's disadvantages right now.

I've summarized them in my tweets below๐Ÿ‘‡๐Ÿฝ

1/ Liveness requirement

Payers, payees, *and* routing nodes must be online to make a payment.

The payee also has to be monitoring the channel at all times to make sure the payer is playing fair, or they have to pay someone else to watch it (i.e. watchtower service).
2/ Capital inefficiency

In addition to payers locking up their capital for transactions, every routing node also has to lock up at least this amount too.

You only need a few hops for this to get ugly fast.

Ex: a 1 BTC payment with 5 routing nodes needs 5 BTC of collateral ๐Ÿ˜ณ
Read 10 tweets
17 Jan 19
๐Ÿ•› While there are a number of smart contract platforms that support a variety of dapps, the majority of Open Finance applications are built on top of Ethereum. Let's take a look at the factors contributing to this dynamic and consider how defensible its moat is in this area.
๐Ÿ•ง Ethereum already has important & modular infrastructure for #OpenFinance. Developers can get their products to market faster by using it, or they can build & maintain infrastructure themselves and use another platform. Which option would you choose?

๐Ÿ• $ETH also has composability which is best illustrated by an example. Imagine an app needs to call @AugurProject, @0xProject & @compoundfinance sequentially. ETH 1.0 guarantees this in a way that next-gen platforms may notโ€”and the results are powerful.

Read 11 tweets
23 Dec 18
1/ @MakerDAO could eat up the vast majority of stablecoins.
2/ Waitโ€”why would users ever deposit stablecoins into a CDP?

Maybe if they want to margin long a stablecoin, but there are better ways to do that. And it makes no sense to mint $100 to pay for something by locking up $250. You already have enough money to pay for that thing!
3/ But consider the profile of most stablecoins today:


They are largely dollar-backed coins by centralized companies.

They are not private nor censorship resistant.
Read 7 tweets
13 Nov 18
1/ One of my biggest pet peeves is when crypto people talk about on-chain governance blockchains and act like they're all the same.

In reality, nearly every on-chain governance system has a different implementation {thread ๐Ÿ‘‡๐Ÿผ}.
2/ To illustrate this point, let's discuss two of the most thoughtful teams building blockchains with on-chain governance: Decred and Tezos.

Both teams have stake-weighted voting systems but they differ greatly in terms of proposal scope and overall mechanics.
3/ Starting with #Decred. $DCR holders can vote for two types of proposals:

๐Ÿ”˜ Proposals that aim to establish voter support for a course of action (e.g. adopting or changing some policy)
๐Ÿ”˜ Proposals that commit to spending the Project Treasury
Read 11 tweets